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Economies of scope and economies of agglomeration: The Goldstein-Gronberg contribution revisited

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  • John B. Parr

Abstract

Following on from the work of Goldstein and Gronberg, it is argued that under certain conditions, internal economies of scope form the bases for two types of agglomeration economy. These differ from two better known types, which are based on internal and external economies of scale. A further two types of agglomeration economy are shown to derive from particular forms of external economy. Attention is then given to the conditions under which economies of scope may be accompanied by either agglomeration economies or agglomeration diseconomies, both internal to the firm. The discussion is extended to the setting of a simple urban system, where agglomeration economies and diseconomies internal to the firm may each exist alongside agglomeration economies or diseconomies deriving from externalities. A scheme is then outlined, in which the various types of agglomeration economy are drawn together within a common framework. Copyright Springer-Verlag 2004

Suggested Citation

  • John B. Parr, 2004. "Economies of scope and economies of agglomeration: The Goldstein-Gronberg contribution revisited," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(1), pages 1-11, March.
    • Handle: RePEc:spr:anresc:v:38:y:2004:i:1:p:1-11
    DOI: 10.1007/s00168-003-0142-0
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    Cited by:

    1. José Pedro Pontes & John B. Parr, 2004. "Economics of Scope, Agglomeration and Location of the Multinational Firm," Working Papers Department of Economics 2004/04, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    2. Antonio G. CALAFATI, 2005. "From 'territory' to 'city': the conceptualisation of space in Italy since 1950," Working Papers 241, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. Boris A. Portnov & Moshe Schwartz, 2009. "Urban Clusters As Growth Foci," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 287-310, May.
    4. Leal, Ana R. & Husted, Bryan W. & Flores Segovia, Miguel Alejandro, 2021. "Environmental performance spillovers among Mexican industrial facilities: The case of greenhouse gases," Journal of Business Research, Elsevier, vol. 135(C), pages 711-720.

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